What is a health savings account (HSA), and why are so few people utilizing it? The HSA is one of the best tax shelters that exists to build wealth.
In this episode of the Finance For Physicians Podcast, Daniel Wrenne talks about how the HSA works, how to decide if it is a good fit for you, and ways to manage an HSA to maximize its efficiency.
- Two Groups of People:
- Those who don’t use HSA at all
- Those who do, but don’t maximize its efficiency
- What is the HSA? Access to an account via a qualified health insurance plan
- What is a qualified health insurance plan? Separate part of plan to use HSA
- Why is the HSA a great way to build wealth?
- Rollover balance
- Invest those dollars
- Offers tax benefits
- Decision-making Factors:
- Low utilization of healthcare insurance
- Higher expected upcoming healthcare costs
- Out-of-pocket costs
- Matching HSA funds
- Incorporate tax benefits
- Open Enrollment: Run the numbers before you choose an option